Use the Following Information for Questions

question 66

Multiple Choice

Use the following information for questions.
Gorman Construction Co.began operations in 2012.Construction activity for 2012 is shown below.Gorman uses the cost-recovery method.

-Which of the following should be shown on the statement of financial position at December 31, 2012 related to Contract 3?

• A)Inventory, $200,000
• B)Inventory, $350,000
• C)Inventory, $2,100,000
• D)Inventory, $2,250,000

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Definitions:

Heterarchy

A form of organization where elements are unranked or where they possess the potential to be ranked in a number of different ways.

Power Struggles

Conflicts arising from two or more parties competing for control, authority, or dominance within an organization or relationship.

Dynamic Power Shifting

The continuous change in the distribution of power among individuals or groups within a particular context or over time.

Constant Infighting

Ongoing, persistent conflicts or struggles for power within a group, organization, or institutional setting, often hindering progress or unity.